A Disconnect In Markets

| February 23, 2019
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“Every single line item in GDP slowed. So the data just slowed a lot faster than what even the most bearish firm on Wall Street predicted. So where could we be wrong? I think it’s possible we’re not bearish enough.” ~Keith McCullough

Earnings Update

412 of the S&P 500’s companies have reported aggregate year-over-year EPS growth of +10.85%. That’s the slowest growth rate of the Q418 Earnings Season (it was tracking +12-14% just two weeks ago.)

Peak of this cycle was +24.5% in 3Q18 so toughest comps will be in 3rd quarter of this year.

3 of 10 sectors have already printed negative year-over-year EPS growth.

So GDP Growth is Slowing and Earnings are Slowing, yet the US stock market rallies.

Why? Trump Tweets? Trade Deal With China? No Government Shutdown? The Fed’s Dovish Pivot? More Economic Stimulus?

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

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